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This article was published on November 9, 2012


    A marriage in supercomputing land: Cray acquires Appro for $25 million in cash

    A marriage in supercomputing land: Cray acquires Appro for $25 million in cash Image by: Justin Sullivan
    Robin Wauters
    Story by

    Robin Wauters

    Robin Wauters is the European Editor of The Next Web. He describes himself as a hopeless cyberflâneur, a lover of startups, his family a Robin Wauters is the European Editor of The Next Web. He describes himself as a hopeless cyberflâneur, a lover of startups, his family and Belgian beer. If you'd like to know more about Robin, head on over to robinwauters.com or follow him on Twitter.

    Two super-duper computing firms are to become one as Cray today announced that it has agreed to purchase Appro International, a privately-held developer of ‘scalable supercomputing solutions’, for approximately $25 million in cash.

    The acquisition price assumes at least a $3.5 million net working capital balance at closing, sans debt.

    Headquartered in Silicon Valley and currently the #3 provider on the Top100 supercomputer list, according to the release, Appro has builds advanced high-performance computing (HPC) cluster systems.

    The company was founded in the early 1990s.

    Notably, Intel acquired Cray’s high-performance computing interconnect program back in April 2012.

    Comments Peter Ungaro, president and CEO of Cray:

    “Appro is one of the market leaders in HPC cluster solutions, and this acquisition is another step forward as we continue to transform Cray into a company that provides world-class offerings to customers across all segments of the supercomputing market, including Big Data.”

    Upon closing of the deal, Appro will become Cray’s newly-formed “Cluster Solutions” business, led by Daniel Kim, current CEO of Appro. Cray will sell Appro’s HPC cluster products under its own brand.

    Approximately 90 Appro employees will join Nasdaq-listed Cray as a result of the acquisition.

    In other but related news, Cray also announced financial results for the third quarter ended September 30, 2012, earlier today.

    The company booked a net loss of $5.2 million on revenue of $35.7 million for the quarter.

    Image credit: Justin Sullivan / Getty Images